Question

A principal of $2900 is invested at 6.25% interest, compounded annually. How much will the investment be worth after 14 years?

Answer 1

$6774.4

Explanation:

Given data

P=$2900

r= 6.25%

t= 14 years

A=???

The compound interest formula is given as

A=P(1+r)^t

substiute

A= 2900(1+0.0625)^14

A= 2900(1.0625)^14

A= 2900*2.336

A= $6774.4

Hence the final amount is $6774.4